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FTC Reaches Settlements with Four Companies That Falsely Claimed Participation in the EU‐U.S. Privacy Shield

Four companies have agreed to settle allegations by the Federal Trade Commission that they falsely claimed certification under the EU‐U.S. Privacy Shield framework and that two of these companies failed to abide by a key
provision of the framework. Tthe FTC alleges that IDmission, LLC, mResource LLC (doing business as Loop Works, LLC), SmartStart Employment Screening, Inc., and VenPath, Inc. falsely claimed to be certified under the EU‐U.S. Privacy Shield, which establishes a process to allow companies to transfer consumer data from European Union countries to
the United States in compliance with EU law.

“Companies need to know that if they fail to honor their Privacy Shield commitments, or falsely claim participation in the Privacy Shield framework, we will hold them accountable,” said Andrew Smith, director of the FTC’s Bureau of Consumer Protection. “We have now brought enforcement actions against eight companies related to the Privacy Shield, and we will continue to aggressively enforce the Privacy Shield and other cross‐border privacy frameworks.”

The Department of Commerce administers the Privacy Shield framework, while the FTC enforces the promises companies make when joining the Privacy Shield framework.